Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 49: To ask the Minister for Finance if he intends to proceed with the imposition of VAT on road tolls; and if he will make a statement on the matter. [24726/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that allowing a person to use a toll road or toll bridge is the provision of a service for VAT purposes that is liable at the standard rate, currently 23%. The application of VAT on such charges is governed by EU law with which Irish VAT law must comply. A European Court of Justice (ECJ) ruling on this issue in 2000 meant that Ireland was required to apply VAT at the standard rate on all existing and future roads and bridges which are subject to tolls. The VAT treatment of tolled facilities was amended in the Finance Act 2001 to take account of the court judgment and provide that taxable persons engaged in providing such services account for VAT at the standard rate.

A subsequent ECJ ruling in 2009 provided that the activities of public bodies, in general, are liable to VAT where such activities could lead to something more than negligible distortion of competition. Irish VAT legislation was amended to make such activities liable to VAT from 1 July 2010. Public bodies engaged in the operation of toll roads and toll bridges are liable to charge VAT at the standard rate from 1 July 2010. The Deputy may be referring to recent media commentary in respect of a possible appeal by the National Road Authority in respect of toll roads operated by the NRA. The Revenue Commissioners cannot comment on individual cases.